Customer Care Line

The Pysch-out Factor of Student Loans

Stress about money and finances is more common than ever,
but for many people with student loan debt, those stress levels are much higher
than any other demographic. According to a survey of more than 1,000 student
loan borrowers (Student
Loan Hero), many respondents reported experiencing feelings of anxiety and
social isolation, as well as physical effects like insomnia and headaches, due
to their mountains of student loan debt.

The Breakdown

The survey provided many options of physical and
psychological symptoms of stress for the respondents to choose from. The
results were rather shocking.

Psychological feelings and symptoms

·
Social isolation – 74%

·
Apprehension or dread – 55%

·
Irritability – 55%

·
Depression – 52%

·
Restlessness – 53%

·
Tenseness – 51%

Average percent of respondents who reported psychological feelings and symptoms – 56.67%

Physical feelings and symptoms

·
Headaches – 72%

·
Sleepless nights – 65%

·
Muscle tension – 56%

·
Nausea – 50%

·
Jumpiness – 21%

Average percent of respondents who reported physical feelings and symptoms
– 52.8%

This means that in either case, more than half of the
respondents stated that they had experienced visible, pertinent, significant
symptoms of stress related to their student loan debt.

This not surprising, considering that many graduates are
leaving school and entering the workforce with tens of thousands of dollars in
student loan debt on average. One last statistic from this survey that does not
seem to fit exactly into any of the above categories:

When asked if they feared their worries over student debt
were spiraling out of control, 61% of respondents said, “Yes.”

Wow. That’s intense.

While there is no quick fix, there are a few things that
many graduates can do to reduce their stress about extreme student loan debt.

Find a better repayment plan.

or many graduates struggling to enter a sometimes-hostile
workplace, income-driven repayment plans are a viable option. These plans can
lower your monthly payments to 10-20% of your monthly discretionary income.

In other words, your leftover spending money after your
essential bills and expenses is what your new monthly loan payment will
reflect.

One thing to keep in mind is that, generally, only federal
student loans are able to be applied to these income-driven plans. Private
loans often do not qualify for government-provided options like this.

Both federal and private loans can often be refinanced,
however. There are several student loan refinancing companies that offer low
variable-interest and fixed-interest rates.

Work on your credit.

Student loan debt is bad enough; if you have other damaging
credit items in your history, it might be helpful to you to work on those
issues in the more immediate term, and free up some other options.

For example, if you can improve your credit by reducing or
removing credit card debt, you can free up some extra cash monthly to help you
meet your student loan payments. Improving your credit can allow you to seek
better interest rates on personal loans, which you could use to reduce your
student loan debt by consolidation.

If your credit is in very poor shape, you may want to
consider working with a credit repair company. Just remember that student loans
cannot be fixed by bankruptcy; thankfully there are plenty of other options
available to most consumers. Be smart, work on what you can, and don’t be
afraid to seek help when you need it. Try your best to keep from sweeping it
under the rug; face things head-on, and you’ll make it through.

Disclaimer

We are not financial advisors and therefor are not giving any financial advise. Before implementing any of the tips on this website, please consult with a financial planner to ensure it makes sense for your individual financial situation.